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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Sam Sara who wrote (869)	9/22/2001 9:27:26 AM
From: Tradelite	Respond to of 306849

Well, let's clarify a few things first....I said the Northern Virginia area was not leading the nation down in housing prices, which it wasn't and still isn't, and I have since posted on SI that the psychology affecting the real estate market since Sept. 11 is not good. I also posted on this thread in the first place, because I disagreed with the concept that the U.S. has somehow been in a "real estate bubble" that will crash. The U.S. has simply been in a typical real estate cycle in which prices have gone up due to increased demand----there has been little "speculation" to fuel a bubble in the cycle we have experienced over the past several years, in my opinion. I also wrote to someone on SI, maybe in a private message, but I believe it was openly on this thread, (and it was definitely before Sept. 11), that if one is looking for a luxury home in a high price range, it might be wise to wait a while. But if looking in the low-to-moderate price range for one's specific area, buy the great, wonderful house if you find it--because if you don't, it WILL get bought by someone else. For a snapshot of opinions from other people about the Northern Virginia real estate market right now--and quotes from Toll Brothers builders and mortgage loan officers about how biz is going since September 11--, go to washingtonpost.com and read today's real estate section. I notice one prominent real estate agent from our metro area was quoted as saying anything under $600K is getting bought, while the luxury homes are faring about as well as any other luxury, discretionary purchase such as cars. Why buy it if you don't need it and it is only a luxury item? My general opinion remains the same. If you need a home and plan to stay in it a long time, find the best one you can find (location, space, amenities, commute to your job) and just buy it. I'm not familiar with too many people who buy homes and don't really need them, anyway. Their other housing alternatives just aren't suitable.